Patanjali Foods Faces FDA Recall for Unsafe Cow Ghee Batch
Patanjali Foods Under FDA Recall Order
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New Delhi, Oct 24: Patanjali Foods Ltd, a prominent player in the FMCG sector, has been instructed by the Food and Drug Administration (FDA) in Madhya Pradesh to recall a specific batch of cow ghee. This directive follows the discovery that a sample from this batch did not comply with food safety standards, as reported in a filing with the stock exchange on Saturday.
The FDA's order was issued because the sample failed to meet the criteria set forth in the Food Safety and Standards (Food Products Standards and Food Additives and Contaminants, Toxins and Residues) Regulations, 2011.
The recall pertains to the affected batch located in Burhanpur.
In response, Patanjali Foods has announced its intention to appeal the decision made by the designated officer of the MP FDA.
The company emphasized that this action is not expected to significantly affect its financial or operational performance, aside from the value associated with the recalled batch.
"The impact on financial or operational activities is minimal, limited to the value of the affected cow ghee batch," the company stated.
On Friday, shares of Patanjali Foods closed at Rs 351, reflecting a decline of over 1 percent on the BSE.
The stock has experienced a 52-week high of Rs 613.95 and a low of Rs 328.05, according to exchange data. Over the past year, the FMCG stock has seen a nearly 41 percent drop, with a 16 percent decrease over the last three years.
In the last five years, shares of Patanjali Foods have increased by 5 percent.
Previously, in June, the company's shares faced a downturn for five consecutive days amid controversy surrounding sorghum flour.
Heavy selling pressure was noted after it was revealed that food safety officials in Kerala's Kannur district had banned the sale of a specific batch of its sorghum flour due to pesticide residue levels exceeding permissible limits.
Patanjali Foods had communicated in a regulatory filing that it received a notice from the Office of the Designated Officer (Food Safety) in Kannur regarding the prohibition order related to the particular batch of sorghum flour.